😊Finishing touches on getting off the currency auction dollar and freeing the IQD by end of the year:
“WHAT DID IRAQ ACHIEVE IN ITS MEETINGS WITH THE US TREASURY, AND DID IT SUCCEED IN CONTROLLING THE SALE OF THE DOLLAR?”
“EXCHANGE RATES WILL RISE FURTHER.. WARNING OF AN IMMINENT ECONOMIC CRISIS DUE TO THE “COLDNESS” OF THE CENTRAL BANK” (Note: this opinion is due to only having 4 current banks set up as correspondent exchange banks used in place of the CBI currency window…it’s called fear mongering by economists wanting more knowledge of what the CBI intends to do.)
“AL-ARAJI: IRAQ STANDS ON THE CUSP OF A HISTORIC DIGITAL TRANSFORMATION”<
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“THE FUTURE OF INTERNATIONAL TRADE TRANSACTIONS IN US DOLLARS IN IRAQ” (Note: The final blow to the US Dollar controlling Iraqi trade dominance and the dinar rate artificial suppression)
“THE OIL AND GAS LAW RETURNS TO THE FOREFRONT… WILL AL-SUDANI BE ABLE TO RESOLVE THE DISPUTES OVER IT?” (Note: we also read about the resolution of Article 140 in last week’s Newsletter, this also will be needed to reinstate)
WHAT DID IRAQ ACHIEVE IN ITS MEETINGS WITH THE US TREASURY, AND DID IT SUCCEED IN CONTROLLING THE SALE OF THE DOLLAR?
The Central Bank of Iraq announced progress in monitoring procedures for foreign transfers and sales operations. Dollar Monetary and providing protection to the banking and financial sector from the risks of money laundering operations, following the ongoing discussions of the Central Bank Iraqi with the Federal Reserve and the US Treasury.
The bank’s governor, Ali Al-Alaq, said in press statements that “the ongoing quarterly meetings with the Federal Reserve and the US Treasury Department, within the framework of organizing operations and coordination between the two sides, which have close relations, led to…The agreement on procedures and formulas that are consistent with best international practices and standards. The latest was the plan to organize foreign transfer operations by rebuilding them according to new standards and methods.”
Al-Alaq stressed that “Iraq has achieved 95% progress in terms of monitoring procedures for foreign transfers and currency sales operations. “Dollar Cash and provide protection to the banking and financial sector from the risks of money laundering operations.
In July 2023, the US Treasury imposed sanctions on 14 banks, and months before that, similar sanctions were imposed on 4 other Iraqi banks after they were accused of money laundering. The Iraqi government continues through the Central Bank Iraqi It has been negotiating for about two years with the US Treasury Department to lift sanctions on these banks, all of which are private banks.
I am told that the IMF will use the cap at about $9-$11 to prevent wild swings out of control that could potentially hurt the basket. I also want to bring out the very recent article on the Special Drawing Rights (SDR) and how important this article is, however, most readers did not even realize or catch on as to why they were explaining all of this to us.
So, let me bring it to your attention again. Let me bring out the main points of this article since we are talking about this basket today and connect this SDR news to the basket of currencies we are about to see for the new peg.
Here is the article again below:
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IRAQ INCREASES RESERVES AT IMF BY 50%
A meeting of the Iraqi Cabinet this evening approved an increase in Iraq’s quota at the International Monetary Fund (IMF) by 831.9 million Special Drawing Rights (SDR), equivalent to 1.45 trillion Iraqi dinars [$1.1 billion] based on the exchange rate as of October 8, 2024.
This 50-percet increase in Iraq’s previous quota will enhance the country’s voting power within the IMF. The additional allocation will be included in the 2025 budget.
The IMF created SDRs as an international reserve asset to supplement member countries’ official reserves; they are not a currency, but rather a claim on freely usable currencies of IMF member countries. They serve as a potential source of liquidity for IMF member nations.
SDRs represent a weighted basket of major international currencies, and can be held as part of a country’s foreign exchange reserves. Adding SDRs to a country’s international reserves makes it more resilient financially.
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So, do you see it yet? Yes, its WOW! WOW! WOW! news but you have to see it and understand and you do this by connecting the pieces to understand what they are telling us in the news. I am attempting to help you see it. When you do see it, your jaw drops and you say “WOWWWWWWWWWWWWWWWWWWWW!”. 😊
You see, many of these very stupid self-proclaimed gods of intel gurus, want to tell you that the RV is happening every day. But as readers to my Newsletter you know differently. Yes, you know the TRUTH and the truth is still all very positive and good but for the right reasons not fake news.
The REAL news is nothing negative about it. But let’s get off the everyday rollercoaster… okay? We just have to let it all play out and it is playing out.
Will we get the Project to Delete the Zeros in November or December timeframe? I am still hearing from my contact it is planned and they intend to begin the collection process before the end of 2024 in preparation for the next stage.
Did you connect the dots as to what they are slowly telling us in these recent articles one by one as time passes? This above article was from October 17, 2024 is yet another example. The article was in my Newsletter back then explains the government program to bring back Iraq to a “formal economy”. The article was titled “ILO: IRAQI GOVERNMENT HAS DEVELOPED PROGRAM TO HELP FACILITATE TRANSITION TO FORMAL ECONOMY”. Did you read it? If you did you can begin to see that when they do transition back to a “formal economy”, as in developed nations, they will need a viable currency. They will get off the sanctioned currency process of the larger three zeros notes. They are doing it now and the major final blow will be at the end of the year when they finally transition off the currency auctions for the dollar for good. The way to transition and complete the transition off the sanction-like economy fully is then to move on to the currency and economic reforms. Yes, they are now moving mostly pass the Pillars of Financial Reforms and onward to using the results of these reforms to rebuild their economy.
Iraq cannot rebuild the economy and attract investors unless they concentrate on these two measures now: the Economy rebuilding (attracting investors and shipping goods) and rebuilding their viable currency (currency reforms and reinstatement). In today’s news once again it’s all mostly about transitioning to these next two steps.
Kirkuk's first census in decades: a test of ethnic relations and political stability
Shafaq News/ Kirkuk, a city defined by its ethnic and sectarian diversity, is facing challenges with its first population and housing census in decades. As the province embarks on this long-awaited process, concerns are growing over its potential to disrupt the delicate demographic balance and communal harmony.
While some see the census as a vital tool for economic development, others worry it could be manipulated to shift population dynamics, reigniting tensions in a city still healing from past conflicts.
Kirkuk's Historical Context
Kirkuk has long been at the heart of Iraq's ethnic and political tensions. The city has experienced dramatic demographic shifts, particularly after the 2003 invasion. Under Saddam Hussein’s regime, the policy of 'Arabization' significantly altered Kirkuk's ethnic composition by relocating Arab families to the region, while pushing out many Kurds and Turkmen. However, following the fall of Saddam, there was a reverse process—Kurds began to return to their ancestral lands, reigniting ethnic and political tensions.
The upcoming census, which has not been conducted since 1997, due to concerns about political manipulation, holds great importance for Kirkuk, as its diverse ethnic groups—Kurds, Arabs, and Turkmen—view the process as a critical moment to solidify their political and demographic standing in the city.
Each group has its aspirations for the census results, with the Kurds aiming to demonstrate their majority status, a claim that could bolster their territorial demands over Kirkuk. On the other hand, Arabs and Turkmen in the region fear that such an outcome could further marginalize their communities, particularly in terms of political power and control over the city’s resources.
In addition to its political importance, Kirkuk’s vast oil reserves add another layer of complexity. The city’s oil wealth remains a central issue, with both the Kurdistan Region and Baghdad competing for control of the province's resources. The results of the census could directly impact the distribution of oil revenues, potentially reshaping the economic landscape of Iraq.
A shift in Kirkuk’s demographic balance might also influence future negotiations over economic shares between the federal government and the Kurdistan Regional Government (KRG).
While the census was expected to reveal the religious or ethnic composition of Iraq, a decision was made not to ask citizens about this information, which has led to opposition in disputed regions.
Calls for Halt
The Arab Coalition in Kirkuk has called to suspend the census process, urging Prime Minister Mohammed Shia Al-Sudani and overseeing authorities to halt the procedures immediately.
In a statement, the coalition stressed that “Kirkuk's sensitive nature means any manipulation of its population balance through illegal means could lead to threatening the city's stability.”
The Iraqi Turkmen Front also expressed concerns, alleging "clear violations" in the census process in Kirkuk. A statement from the group highlighted the entry of numerous families not originally from the province, observing these actions publicly and “under the gaze of both the public and security forces.”
The Front criticized this as “an open attempt to alter the demographic landscape of the province.”
Kurds Call for Participation
The Kurdistan Democratic Party (KDP) bloc, the largest Kurdish party in Iraq led by Masoud Barzani, has called for the participation of all Kurds and other ethnic groups in the disputed areas, including Kirkuk, in the ongoing population census. The bloc described the census as an "important step" for providing a data foundation for economic conditions.
Hassan Majid, head of the KDP bloc in Kirkuk, told Shafaq News that Prime Minister al-Sudani's recent visit to Erbil provided reassurance regarding the disputed areas, which fall under Article 140 of the Iraqi Constitution.
“While the KDP has had reservations about conducting the census in these areas, we emphasized our support for the participation of all ethnic groups.”
He further stated that the KDP views the census as an economic development tool, adding, "Any country lacking a developmental database is like a person walking in the dark without sight."
Authorities Reassure
Since the morning, the province has been experiencing relative calm, with a curfew in place aimed at facilitating the population census process, according to Captain Amer Nouri, spokesperson for Kirkuk Police.
Speaking to Shafaq News, Nouri confirmed that the curfew will remain in effect until midnight on Friday. The comprehensive restrictions include strict limitations on vehicle movement and the closure of external checkpoints. “The primary objective of these measures is to ensure stability and facilitate the work of census teams.”
In addition, the provincial government in Kirkuk has taken steps to ensure the census is conducted fairly, with local officials stressing the importance of transparency. However, the complex political dynamics in the city raise questions about whether the process can remain neutral or if external pressures will influence the outcomes."
Mustafa Akram, Director of Planning and Statistics in Kirkuk, told Shafaq News that approximately 5,652 individuals are working as enumerators and assistants, along with around 1,000 supervisors overseeing the efforts. He highlighted that Kirkuk province has made significant progress in field enumeration and family registration, positioning it among “the most advanced areas in the completion and documentation of the fieldwork.”
Akram explained the revised approach for the census team composition in Kirkuk, noting that the need for mixed ethnic teams of Kurds, Arabs, and Turkmen in one location has been eliminated. “Instead, workers from the same ethnic group are assigned to their respective areas: Kurds in Kurdish areas, Arabs in Arab areas, and Turkmen in Turkmen areas, ensuring smoother operations.”
Riad Saleh, a member of the Kirkuk Provincial Council, further reassured Shafaq News that the Planning and Statistics Directorate in Kirkuk is performing effectively.
Addressing rumors about favoritism, he clarified that the selection process for assistant staff showed equal representation from all three ethnic groups, with 200 Kurds, 200 Arabs, and 200 Turkmen selected.
Saleh stressed the importance of cooperation among all ethnicities to ensure the census's success, pointing out that the process would pave the way for projects and services benefiting the entire province in the near future.
As Kirkuk undergoes this delicate process, the results could either pave the way for greater cooperation or intensify the region's political rifts, depending on how effectively the ethnic groups and authorities manage the complexities of this momentous event.
Following the generalized floating of the world’s major currencies in 1973, a number of smaller countries began pegging the value of their currencies to an average value, or basket, of selected foreign currencies.
At the end of 1985, 43 member countries of the Fund maintained such basket peg arrangements. Taking into account countries that adopted and then abandoned a basket peg, the total number of countries with such arrangements during 1973-85 was 63
While the ability to maintain a market determined exchange rate is a benefit of free floating shared by all countries, it can be a relatively costly arrangement for small countries, with their smaller volume of foreign exchange transactions, relatively inelastic trade flows, and less developed financial markets.
These countries, therefore, have a greater incentive to choose a fixed over a freely floating exchange rate. In the current environment, however, when most major currencies are floating independently, no small country can maintain a strictly fixed exchange rate system: a decision to peg the currency to any major currency inevitably leads it to float against all other floating currencies.
The choice of a basket depends upon the exchange rate policy objective of the authorities. This objective may be defined in terms of a readily identifiable relative price variable, such as the terms of trade or the real exchange rate, or in terms of a macroeconomic variable such as the balance of trade or, more important, the balance of payments.
Bottom line is this – the IMF fully intends to repeg the IQD to a basket of currencies once they revalue it and turn it back on FOREX (as you know this is called a reinstatement for all you newbies). It will initially be a FREE FLOAT driven by market fluctuations however it will be monitored and my CBI contact has told me they will cap it at a level to control the initial massive swings, if needed.
Then over a period, the rate is expected to settle down to its nominal rate. I am told this could be about $3.85ish. The then CBI director in 2011 Dr. Shabibi told his audience in a news media conference on the Iraqi economy that the dinar could sustain a fluctuation as high as $16 USD. Many of these very stupid intel gurus have told you many lies about what he really said as they exaggerate this peak amount to much, much more. Don’t believe it.
I am told that the IMF will use the cap at about $9-$11 to prevent wild swings out of control that could potentially hurt the basket. I also want to bring out the very recent article on the Special Drawing Rights (SDR) and how important this article is, however, most readers did not even realize or catch on as to why they were explaining all of this to us. So, let me bring it to your attention again. Let me bring out the main points of this article since we are talking about this basket today and connect this SDR news to the basket of currencies we are about to see for the new peg.